Canadian Parliament in Ottawa

Legislators cleared most lingering tax-related proposals from the order paper last month with the passage of two omnibus budget implementation bills: C-59 and C-69.

But the big news of the January–June session was the increase to the capital gains inclusion rate, for which draft legislation will be released later this month.

The earliest that implementing legislation can be officially tabled is September. The House of Commons resumes sitting on Sept. 16, and the Senate comes back the day after.

In the interim, below we review the state of the government’s major tax and estate-planning promises since our last update.

Proposals passed into law and moving forward

Bills C-59 and C-69 received royal assent at the end of June.

Bill C-59, which was first tabled in November 2023, contained legislation to implement the following key proposals:

Bill C-69 was tabled in April and contained legislation to implement the following key proposals:

In addition, the Canada Revenue Agency’s automatic tax filing pilot will commence this summer.

Budget proposals not in legislation

On June 10, the government tabled a notice of ways and means to implement changes to the capital gains inclusion rate as of June 25. Draft legislation will be tabled later this month.

The other promise from the 2024 federal budget that hasn’t yet appeared in legislation is the Canadian Entrepreneurs’ Incentive.

Proposals with updates since our last check-in

Aging at home

Three promises from the Liberals’ 2021 election platform were highlighted in the final report from the National Seniors Council regarding aging at home, which was commissioned by the ministers of seniors and of health:

  • Create an aging at home benefit
  • Increase the guaranteed income supplement
  • Make the Canada caregiver credit refundable

The latter two promises have appeared in mandate letters for relevant ministers, and none of the three promises has been proposed in federal budgets or legislation.

CPP review

The Liberals promised in their 2019 election platform to raise the CPP and QPP survivor’s benefit by 25%. The matter was studied as part of the 2022–2024 Triennial Review of the CPP.

Recommendations from the review appeared in the 2024 budget, but the change to the survivor’s benefit was not among them. The government did, however, propose doubling the CPP death benefit for contributors who have no survivors and have never collected CPP, which passed as part of C-69.

The change to the CPP “will come into force once the federal government and at least seven provinces, representing at least two-thirds of the population, have provided their formal consent,” a spokesperson for the Department of Finance stated in an email.

Other recommendations from the review that were passed in C-69 and still require provincial consent are:

  • Create a new child’s benefit for dependent children aged 18–24 who attend school part time.
  • Maintain eligibility for the disabled contributor’s child’s benefit in cases where the disabled contributor reaches age 65.
  • Extend the CPP’s incapacity provisions to protect the date of application for the disabled contributor’s child’s benefit.
  • Clarify the determination of the payee of the disabled contributor’s child’s benefit.
  • Preclude entitlement to the survivor’s pension in cases where a survivor has received a division of unadjusted pensionable earnings in respect of their deceased separated spouse.

Proposals with no major updates

  • Implementing a career extension tax credit for working seniors was promised in the 2019 election platform and mentioned in Finance Minister Chrystia Freeland’s 2021 mandate letter. It appeared in the 2024 pre-budget report of the Standing Committee on Finance but did not appear in the budget itself.
  • Nothing has been announced regarding these other 2019 election promises:
    • increasing the Canada child benefit by 15% for kids younger than one year old
    • making EI maternity and parental benefits tax-exempt
    • doubling the child disability benefit